Wendy's will Introduce Breakfast Across the United States Next Year

Wendy's announced its 2020 plans for a national breakfast expansion

Wendy's Co.is gearing up to win a much bigger bite of the USA breakfast business with an expansion plan that might boost business in the long run but will eat into near-term profitability.

In the past, the chain has attempted several times to sell breakfast, dating back to the 1980s.

Now available at more than 300 participating locations, Wendy's breakfast menu takes fan-favorite items like the Baconator and the Frosty and serves them up with a breakfast twist.

The Breakfast Baconator fits a lot into a bun: an egg, six strips of Applewood smoked bacon, one square breakfast sausage patty, two slices of American cheese and a Swiss cheese Hollandaise sauce.

The Frosty-ccino: Cold-brew coffee mixed with either chocolate or vanilla Frosty cream.

The Honey Butter Chicken Biscuit is pretty self-explanatory.

"Honey Butter Chicken Biscuit" is a buttermilk biscuit with a fried chicken sandwiched in between with whipped honey butter.


"Launching breakfast into our USA restaurants nationwide provides incredible growth opportunities", CEO Todd Penegor said in a statement. Wendy's could use the boost. More people prepare breakfast at home than any other meal, and the morning remains the only growth market for the fast food industry, according to research group NPD. "We believe we have the right team and structure in place, and we put Wendy's fan favorites on our breakfast menu to set us apart from the competition".

However, it's going to be an expensive The company plans to hire roughly 20,000 new workers for the initiative.

All of this work carries upfront costs.

Expanding breakfast to almost 6,000 stores nationwide will initially cost Wendy's about $20 million.

Wendy's now expects earnings per share, excluding some items, to decline between 3.5 and 6.5 per cent in 2019.

Adjusted EBITDA will be flat to down 2 per cent, below the 2.5 to 4.5 per cent growth it had been targeting.

FOX Business reached out to Wendy's for comment at the time of this report, however, the fast-food chain said it will reveal more information during its Investor Day on October 11, 2019. Wendy's plans to give more financial guidance at an October 11 investor meeting.

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